Namibia Embassy Berlin -

Investing through the correct vehicle the key to the long term success of your Namibian operations.

When investing in Namibia one of the most important questions faced by many investors is the question pertaining to the type of entity through which operations are to be conducted.  

Namibian Company v Branch Office in Namibia

Potential investors regularly require guidance on whether is more beneficial to register a Namibian company compared to the registration of a branch office in Namibia.  However, the concept of a branch office is foreign to Namibian law.  The Namibian Companies Act refers to an external company which is a legal entity registered in a foreign jurisdiction which is entitled to do business in Namibia.
As a rule of thumb, we advise investors to rather register a Namibian Company instead of registering a branch office in Namibia.  The reasoning for this advice is the possible substantial annual duty to which the branch (external company).  There may however be a possible benefit regarding the Namibia withholding tax on interest which may be received by the external company.

Types of Legal Entities in Namibia

In Namibia business operations can be conducted through public companies, private companies, closed corporations and business trusts as legal entities. The advantage of trading through a legal entity is the fact that the natural persons who act on behalf of the entity cannot (unless there are certain exceptional circumstances) be held personally liable for the liabilities of the entity.
As was stated above we normally advise investors to commence their Namibian operations through a private Namibian company.  This entity allows the investor to hold 100% of the shareholding in the private Namibian company and further allows it to appoint its representatives as the directors of the company.  However as each investor requirements differ we prefer to advise on an appropriate structure, depending on the exact nature, scope and requirements of the clients intended operations.  
Individuals who commence operations should consider an option whereby the shareholding in the private Namibian company that conducts his operations is held by a family trust.  This structure creates the scenario whereby the cost associated with the winding up of the deceased estate is substantially reduced.

Costs Associated with the Registration of the Various Namibian Legal Entities.

Private Namibian Company
N$ 5000-00

Namibian Closed Corporation
N$ 3500-00

Namibian Trust
N$ 5500-00

Namibian Public Company
N$ 6500-00

Section 21 Company (and registration as a welfare organisation)
N$6500-00